20 Startup Metrics that Matter for Smarter, Faster SaaS Business Growth

Why SaaS Business Metrics Are Vital

20 Key SaaS Metrics for Every Startup to Track

Metrics that Help Measure User Engagement

  • visitors who subscribed to your blog and newsletter
  • visitors that filled out a form on your website to download an ebook
  • marketing-qualified leads who meet the demographics and interest criteria
  • sales-qualified leads that have demonstrated sales-readiness, usually by requesting a sales conversation or free demo
  • product-qualified leads who are using parts of your product for free

Customer Retention Metrics

User Satisfaction Metrics

SaaS Financial Metrics

  • New MRR is revenue gained only from new customers in a given month
  • Add-on MRR (or expansion MRR) — revenue from existing customers that buy additional product features, upgrade the account, add new users, etc.
  • Churned MRR — the monthly revenue lost from cancellations and downgrades
  1. The costs of generating a lead, usually encompassing marketing expenses like advertising, search engine optimization (SEO), content writing, etc.
  2. If the company follows an inside, channel, or field sales model, the costs of converting that lead into a customer, typically the sales, or touch costs — the salaries and commissions of sales development reps or field salespeople.

The Takeaway

  • focus primarily on those that reflect user needs, user happiness, and engagement
  • align the user, product, and business goals
  • accentuate SaaS KPIs that impact long-term growth in revenue and avoid vanity metrics
  1. You should recover your CAC in less than 12 months.
  2. At least 30% of your revenue should come from upselling and cross-selling to existing customers in order to offset inevitable churn.
  3. Your CLV should be about three times your CAC. It is a good way to figure out whether you will be profitable in the long run.

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